Doing Business in Argentina

Business Culture

Although Argentina has a relatively strong middle class and a level of social mobility that is noticeably higher than in other Latin American countries, relationships and "insider" status are more important in business than in the English speaking world. Centralised and autocratic management styles prevail. Many companies, even big ones and big holding groups, remain family owned and family run. However, a new generation of young professional managers, many with foreign training and MBAs, is arising and gradually introducing more modern and open management styles. However, personal dealings and knowledge of individuals remain strong.
Business strategies are often dominated by short term considerations. The long years of hyperinflation have left a general tendency to give high consideration to cash flow management and to the achievement of rapid results in investments and in business in general. Middle managers and engineers in big companies tend to speak English. English speaking is less frequent in medium and small companies. It is widely recognised that tax evasion is rampant. It has been estimated that evasion and fraud in VAT reach approximately 40%, equivalent to a loss of some US$17 billion in tax receipts. Tax evasion and fraud pose a problem of unfair competition to those business that do pay taxes. This problem has been particularly high in the meat processing industry, for example. Corruption and tax fraud are aggravated by the weaknesses of the Judiciary System.

Some Useful Sources of Information

Markets and Sectors
http://www.invertir.com/10indus.html
http://www.invertir.com/04oppor.html
http://tradeport.org/ts/countries/argentina/sectors.html

Market Access
http://www.tradeport.org/ts/countries/argentina/market.html

Investment climate
http://www.invertir.com/05forei.html
http://www.invertir.com/7reasons.html
http://www.tradeport.org/ts/countries/argentina/climate.html
http://www.mecon.ar/invest/invest1.htm

Market Access Sectoral and Trade Barriers
http://mkaccdb.eu.int

Other Sources of information

Argentina Business - Information for doing business with Argentina.
http://www.invertir.com

InterNOA - Information and business/cultural contacts on the northwest area of Argentina.
http://internoa.com